Pricing fixing

[David Porritt]

Somehow in the posts about price fixing etc. there has been the assumption
that the Federal Trade Commission, or any other authority in this area is
going to use logic in their evaluation of what is and what is not price
fixing.  I don't think that is a safe assumption!

dave



Carl Root wrote:

> Two technicians are at a bar . . . .  (ha, ha, ha.)
>
>      "Really!? You're only charging $85? I've been charging $100 for a
> year!"
>      "Gee, that's a lot! I'm surprised they're willing to pay it. "
>      "I give myself a cost of living raise every year just to keep even.
> That way, the increases are small.  I get an objection from one or two
> people each time.  No big deal."
>      Well I sure have noticed that other home services have gone up.
> Just the minimum service charge is close to my fee.  When they have to
> do an hour's work, it goes way beyond what I charge.
>      "I figure a tuning fee is about the same as a good pair of shoes.
> In a way, I've been charging the same for twenty years.  The value of
> the dollar just keeps changing."
>
> If both technicians raise their rates next week, is that price fixing?
> They were probably following their usual practice of regular increases,
> just like every other service.  The problem is, to everyone else at the
> bar who knew they were talking about prices, all they know is the cost
> of the service just went up, and if they're the only two technicians in
> town, it sure looks like price collusion.
>
> It's all in the appearances.
>
> Carl Root, RPT



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David M. Porritt, RPT
Meadows School of the Arts
Southern Methodist University
Dallas, Texas
mailto:dporritt@swbell.net
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